If your business processes large cash payments, here’s what the IRS wants you to know

Posted on October 22, 2023

Beginning Jan. 1, 2024 next year, businesses that file ten or more information returns must e-file Form 8300, Report of Cash Payments Over $10,000, instead of filing a paper return.

Information reported on Form 8300 will help the IRS uncover tax evaders, criminals profiting from the drug trade, and others committing potentially criminal conduct.

Here’s what businesses need to know:

The requirement for e-filing Form 8300 applies to businesses that are required to e-file certain other information returns such as Form 1099 series and Form W-2.
To file Form 8300, a business must first set up an account with the Financial Crimes Enforcement Network’s BSA E-Filing System. The IRS will ensure the privacy and security of all taxpayer data.
Businesses that receive more than $10,000 in cash must report transactions to the U.S. government.
For those with fewer information returns, e-filing Form 8300 is still optional.

Waivers and exemptions:

If filing electronically would cause undue hardship, businesses may request a waiver by submitting Form 8508, Application for a Waiver from Electronic Filing of Information Returns.
If the IRS grants a waiver from e-filing any information return, that waiver automatically applies to all Form 8300s for the rest of the calendar year. (A business may not request a waiver from filing electronicallyonly Form 8300.)
If a waiver is given, the business must include the word “waiver” on the center top of each Form 8300 when submitting a paper filed return.
If using the e-file technology conflicts with a filer’s religious beliefs, they are automatically exempt from filing electronically. The filer must include the words “religious exemption” on the top of each Form 8300 when submitting the paper return.

E-filing is free and secure
Many businesses have already found the free and secure e-filing system to be a more convenient and cost-effective way to meet the reporting deadline of 15 days after a transaction.

Businesses get an email that confirms when the IRS receives the form after each e-file transaction. Businesses can also batch e-file their reports, which can be especially helpful to those required to file multiple forms.

If you need clarity on this new regulation for your business, give us a call or send an email. Information is also available via the Bank Secrecy Act E-Filing Help Desk at 866-346-9478 or by email at bsaefilinghelp@fincen.gov. The IRS help desk is available Monday through Friday from 8 a.m. to 6 p.m. ET.

More information:

IRS and Treasury issue final regulations on e-file for businesses
Video: How to Complete Form 8300 – Part I, Part II